Abstract Sweden was one of the first countries to introduce a carbon tax back in 1991. We assemble unique data set tracking CO2 emissions from Swedish manufacturing firms over 26 years estimate impact pricing on firm-level emission intensities. an emission-to-pricing elasticity around two, with substantial heterogeneity across subsectors and firms, where higher abatement costs tighter financial constraints are associated lower elasticities. A simple calibration suggests that 2015 would have...

Abstract Higher country taxes on noxious manufacturing emissions lead to substantial increases in firms’ R&D spending. The response is entirely driven by those high-pollution firms most affected taxes. Pollution increase the marginal value of spending polluting firms, even when this does not new innovation. have strongest effect investment sectors which invention difficult appropriate and outside knowledge easier acquire, suggesting an important reason dirty invest expand their capacity...

Abstract This article investigates the impact of natural catastrophes and 9‐11 attacks on (1) volatility insurance stocks (2) correlation with market. We find that increase stocks. They also have a tendency to reduce Investors can, consequently, diversify catastrophe risk by additionally holdings market portfolio. However, this does not hold for 9‐11. The events led increases in and, simultaneously, an correlation. evidence increased beta

The economic disruption from the COVID-19 pandemic prompted governments around world to initiate an unprecedented number of temporary lending and tax deferment programs. Which firms will benefit these programs? What are implications for firm balance sheets post-crisis survival? We provide some novel insights on questions by studying one first government programs this type, which Sweden launched at height 2008–2009 financial crisis. Swedish program allowed temporarily suspend payment all...

We derive the optimal contract between a principal and liquidity-constrained agent in stochastically repeated environment. The comprises court-enforceable explicit bonus rule an implicit fixed salary promise that must be self-enforcing. Since agent's rent increases with pay, implements maximum credible promise. Thus, while effort decrease higher probability of premature termination. subject this mechanism to econometric testing using personnel data insurance company. empirical results...

Sweden was one of the first countries to introduce a carbon tax in 1991. We assemble unique dataset tracking all CO2 emissions from Swedish manufacturing sector estimate impact pricing on firm-level emission intensities. In panel regressions, spanning 26 years and around 4,000 firms, we find statistically robust economically meaningful negative relationship between marginal pricing. an emission-to-pricing elasticity two, albeit with substantial heterogeneity across subsectors. A simple...

We study the impact of financing constraints on corporate risk management. Using data credit scores matched with unique information firm level commercial insurance purchases, we find that lead to higher spending. adopt a regression discontinuity design and show financially constrained firms spend 5–14% more than otherwise similar unconstrained firms. Our findings add new insights longstanding empirical puzzle whether engage in Furthermore, our results, shed light management smaller, mostly private

Abstract This article investigates if increasing neutrality between debt and equity capital might improve the efficiency in a corporate tax system. Firm-level sector- level taxation data from Sweden is used to study system that characterized by very few limitations with respect deductibility of interest costs leads systematic differences taxes paid different sectors. paper finds there are sectors’ payments these can be explained use capital.

The traceability of the World Infrared Standard Group Pyrgeometers (WISG) was established through comparison to several independently calibrated radiometers (Infrared Integrating Sphere Radiometer (IRIS), Absolute Cavity Pyrgeometer (ACP), Atmospheric Emittance Radiance Interferometer (AERI)). longwave irradiance measurements SI validated by a two characterized blackbody cavities.

Assuming a liquidity constrained agent, we characterize the optimal implicit contract in repeated game characterized by moral hazard. With longer expected duration, bonus pay is shown to decrease while salary promise and productivity increase. We test our model using personnel data of an insurance company: accounting for trade-off between performance pay, confirm that former (latter) positively (negatively) correlated with productivity. Longer duration impacts all three key variables -- i....

There exists a considerable debate in the literature investigating how stock market upswings or downswings impact financial regulation. The present paper contributes to this and investigates whether regulation follows regulative cycle: does regulation, consequently investor protection, increase as result of downturn (as argued by, e.g., Zingales (2009)) – contrary cycle hypothesis an upswing claimed by Povel (2007), Hertzberg (2003)). Following Jackson Roe (2009), we use funding data on...

Using personnel data on back-office employees of an insurance company, we calculate three measures pay inequity, “inequality,” “envy,” and “altruism,” for total as well as, separately, components, salary, commissions, year-end bonuses. Job performance is measured by the value commissions new contracts which accrue to sales agents who are serviced employee. Quantile panel regressions show that inequity effects distinctly differ over distribution across different components. Further, results...